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New 'know your customer' rules proposed for banks

WASHINGTON (AP) — The U.S. government is proposing new rules for banks and other financial firms aimed at preventing the use of anonymous companies to launder illicit profits.

The Treasury Department opened the proposal Wednesday to public comment for 60 days. The so-called "know your customer" rules would add a requirement that financial firms know and verify the identities of the people who control companies, known as beneficial owners.

Under current rules financial firms are required to report suspicious transactions to authorities, to prevent the financial system from being used to launder proceeds from illegal activities or for financing terrorism.

Treasury said the new proposal is in line with principles adopted by the eight major industrial countries to fight tax evasion, bribery and money laundering.